Jeff Associates needs to repay $29,000. The company plans to set up a sinking fund that will repay the loan at the end of 6 years. Assume a 10% interest rate compounded semiannually. What must Jeff pay into the fund each period of time? (Use Table 13.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Payable amount
Jeff Associates needs to repay $29,000. The company plans to set up a sinking fund that will repay the loan at the end of 6 years. Assume a 10% interest rate compounded semiannually. What must Jeff pay into the fund each period of time? (Use Table 13.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Payable amount
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Jeff Associates needs to repay $29,000. The company plans to set up a sinking fund that will repay the loan at the end of 6 years.
Assume a 10% interest rate compounded semiannually. What must Jeff pay into the fund each period of time? (Use Table 13.3.) (Do not
round intermediate calculations. Round your answer to the nearest cent.)
Payable amount
acer
Transcribed Image Text:TABLE
13-3
Period
2%
3%
4%
5%
6%
8%
10%
Sinking fund table$ based on $1
1
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
2.
0.4951
0.4926
0.4902
0.4878
0.4854
0.4808
0.4762
3.
0.3268
0.3235
0.3203
0.3172
0.3141
0.3080
0.3021
4.
0.2426
0.2390
0.2355
0.2320
0.2286
0.2219
0.2155
5.
0.1922
0.1884
0.1846
0.1810
0,1774
0.1705
0.1638
0.1585
0.1546
0.1508
0.1470
0.1434
0.1363
0.1296
0.1345
0.1305
0.1266
0.1228
0.1191
0.1121
0.1054
8.
0.1165
0.1125
0.1085
0.1047
0.1010
0.0940
0.0874
6.
0.1025
0.0984
0.0945
0.0907
0.0870
0.0801
0.0736
10
0.0913
0.0872
0.0833
0.0795
0.0759
0.0690
0.0627
11
0.0822
0.0781
0.0741
0.0704
0.0668
0.0601
0.0540
12
0.0746
0.0705
0.0666
0.0628
0.0593
0.0527
0.0468
13
0.0681
0.0640
0.0601
0.0565
0.0530
0.0465
0.0408
14
0.0626
0.0585
0.0547
0.0510
0.0476
0.0413
0.0357
15
0.0578
0.0538
0.0499
0.0463
0.0430
0.0368
0.0315
16
0.0537
0.0496
0.0458
0.0423
0.0390
0.0330
0.0278
17
0.0500
0.0460
0.0422
0.0387
0.0354
0.0296
0.0247
18
0.0467
0.0427
0.0390
0.0355
0.0324
0.0267
0.0219
19
0.0438
0.0398
0.0361
0.0327
0.0296
0.0241
0.0195
20
0.0412
0.0372
0.0336
0.0302
0.0272
0.0219
0.0175
24
0.0329
0.0290
0.0256
0.0225
0.0197
0.0150
0.0113
28
0.0270
0.0233
0.0200
0.0171
0.0146
0.0105
0.0075
32
0.0226
0.0190
0.0159
0.0133
0.0110
0.0075
0.0050
36
0.0192
0.0158
0.0129
0.0104
0.0084
0.0053
0.0033
40
0.0166
0.0133
0.0105
0.0083
0.0065
0.0039
0.0023
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